18 March 2013 14:10 [Source: ICIS news]
GURGAON, India (ICIS)--IndianOil's joint venture styrene butadiene rubber (SBR) plant at Panipat, Haryana, is due to start operations in August, a senior company source said on Monday.
"The plant is likely to run at around 60% for three months after which operations will be ramped up to 80%. We are likely to see full operations in Q1 2014," said Siddhartha Mitra, executive director for petrochemicals at IndianOil, on the sidelines of the Petrochemical Conclave in Gurgaon organised by the company.
The 120,000 tonnes/year plant is a joint venture between IndianOil, TSRC, of Taiwan, and Marubeni Corp. It will have two lines, each with a 60,000 tonne/year capacity.
"The plan is to sell the entire volume in the domestic market. We have already started discussions with tyre manufacturers," he added.
As the product approval process at tyre companies is likely to take time, the joint venture will initially sell higher volumes to the non-tyre sector.
Feedstock butadiene would be sourced from IndianOil's naphtha cracker at Panipat while styrene would be imported.
"We have the potential to produce 140,000 tonnes/year of butadiene at the Panipat cracker, we will initially use about 80,000 tonnes/year at the SBR plant and sell the balance locally or export," said Mitra.
In the longer run, the joint venture also plans to add a third SBR line of 60,000 tonnes/year.
"IndianOil's board has cleared this investment, we are now waiting for the partners to secure board approval," he added.
Additional reporting by Prema Viswanathan
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